MONEY VOCABULARY

CREDIT• the ability of a customer to obtain goods or services before payment,

based on the trust that payment will be made in the future.

DEBIT• an entry recording an amount owed, listed on the left-hand side or

column of an account.

INTEREST• money paid regularly at a particular rate for the use of money lent, or for

delaying the repayment of a debt.

GROSS PAY• An amount of pay, wages, salary, or other compensation before

deductions, such as for taxes, insurance, and retirement.

NEXT PAY• An amount of pay, wages, salary, or other compensation before

deductions, such as for taxes, insurance, and retirement.

FIXED EXPENSES

• costs are those that do not fluctuate with changes in production level or sales volume.

VARIABLE EXPENSES• are those costs that vary depending on a company's production volume

CONSUMABLE GOODS• are goods that, according to the 1913 edition of Webster's Dictionary, are

capable of being consumed

DURABLE GOODS• goods not for immediate consumption and able to be kept for a period of

time.

FICA• is a United States federal payroll tax imposed on both employees and

employers to fund Social Security and Medicare—federal programs that provide benefits for retirees, the disabled, and children of deceased workers.

SALARY• a fixed regular payment, typically paid on a monthly or biweekly basis but

often expressed as an annual sum, made by an employer to an employee, especially a professional or white-collar worker.

DISCRETIONARY EXPENSES

• is a cost which is not essential for the operation of a home or a business.

BUDGET

• an estimate of income and expenditure for a set period of time.

CREDIT SCORE• a number assigned to a person that indicates to lenders their capacity to

repay a loan.

FINANCIAL INSTITUTION• are composed of organizations such as banks, trust companies, insurance

companies and investment dealers.

INTEREST• money paid regularly at a particular rate for the use of money lent, or for

delaying the repayment of a debt.

SALARY• a fixed regular payment, typically paid on a monthly or biweekly basis but

often expressed as an annual sum, made by an employer to an employee, especially a professional or white-collar worker.

MORTGAGE• the charging of real property by a debtor to a creditor as security for a

debt on the condition that it shall be returned on payment of the debt within a certain period.